The Ugandan government recently proposed two bills that aim to significantly increase the tax burden on the gambling industry, affecting both operators and players. Last week, Ugandan lawmakers introduced the "Lottery and Gaming (Amendment) Bill 2026," which, if passed, would unify the gambling tax at 30% of GGR, consistent with the online gambling tax rate. At the same time, the "Income Tax (Amendment) Bill 2026" was also brought to the agenda, introducing a 15% withholding tax on net profits from gambling and gaming activities. If approved, both bills will take effect from July 1 this year. Frankly speaking, a 30% GGR tax combined with a 15% player profit tax is considered quite high even by African standards.
Unified Tax Rate: From Graded to Consistent, Operator Pressure Doubles
Currently, Uganda's gambling tax is divided into two tiers according to the 2023 Act. This act raised the tax rate on casinos and other gambling activities from 20% to 30%, as these activities are considered more harmful to players. Meanwhile, the tax rate for sports betting remains at 20%, as operators have lower profit margins. If a unified 30% tax rate is implemented, Uganda will become one of the countries with the highest gambling tax burden in Africa. Uganda is not the only African country seeking to adjust gambling taxes. Last year, neighboring Kenya imposed a 5% tax on every withdrawal from gambling wallets, along with a 5% consumption tax on deposits. In February this year, Lagos State in Nigeria implemented an immediate 5% profit withholding tax.
Market Performance and Challenges of Illegal Gambling
According to data from H2 Gambling Capital, Uganda's gambling market has been steadily growing in recent years. In 2025, the total profit of the interactive market reached $438.3 million, and it is expected to increase to $995.5 million by the end of 2029. Sports betting is the main activity in Uganda, accounting for $328 million of the total interactive profit in 2025. However, the market faces challenges from illegal gambling—the offshore interactive market generated a total profit of $114.8 million in 2025, exceeding 26% of the total interactive revenue. This means that if the tax rate is too high, it may further push players towards unregulated offshore platforms. For more African gambling regulatory dynamics, continue to follow PASA official website.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
